Share Market Scams- Upfront Investor Share Market Report 25/09/09

http://www.youtube.com/watch?v=37ZMeyhsALI

It never ceases to amaze me that every time the market is bullish an array of new scams appear. Only recently I was talking with a gentleman who received a call from an overseas company about an incredible investment opportunity that promised safe returns of several hundred percent over the next 6 months. Based on this alone, the red flags should fly. While the company sounded credible and the caller knowledgeable, it was obvious that this was a marketing gimmick designed to entice unsuspecting investors to invest offshore. While these types of investments sound attractive, it really comes down to buyer beware.

Apart from the currency risk of investing overseas, you need to understand that the investment is not regulated by ASIC, which means there is very little recourse if the investment turns sour. In my opinion, the best thing you can do is hang up, but if you do decide to investigate it further, ensure you do your homework before making any commitment and make sure you visit ASICís consumer website www.fido.gov.au/fido

So what can we expect in the market?

Over the past week the market has continued to defy logic by trading sideways rather falling as I expected. That said during 5 of the last 7 days our market has traded down, and Wednesdayís strong bullish run failed to break above the previous high of 17 September, although the bulls were trying.

The market was down yesterday and it looks as though it will be down again today, which suggests that it is rejecting any bullish attempts. Given this, it is quite possible that we will see the market move down further over the coming week as it finally moves into the short term low I have been expecting. If I am correct we could see a short sharp move down near the end of next week and possibly very early the week after, with the market likely to fall by at least 5 per cent and as much as 10 per cent.

Following this, the market is likely to rise up to around 5000 points by mid to late October before falling into another low in November. Remember, shares can move contrary to the overall market, given this there is still time to profit if the right opportunity presents itself. But a word of caution, be selective, make sure the company is strong and above all protect capital by setting stop losses.

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